If you are still wondering what type of forex trading account to choose, this article will give you an overview and classify the types of forex account for beginners that best forex broker offers. The types of accounts will be divided into groups according to the requirements from low to high. The article will only cover real account types.
If you’re new to forex trading, you have to read
First, the type of account that is most suitable for beginners or traders who want to experience trading platform conditions is Cent account or Mini account. Both types of accounts require very low initial deposits or do not even require minimum deposit levels, diverse leverage, and full support of deposit methods. Cent account, when you deposit 10 USD, the account will display the equivalent of 1000 Cent, and you trade in units of cents, depending on the number of lots you choose. The disadvantage of a mini account is that the spread fee will be slightly higher.
However, these two types of accounts will be very suitable for new traders, reducing risk and from that you can manage capital well and trade longer.
The two types of accounts are almost the same, with only different names depending on the broker. This type of account is considered the most popular in the forex market, true to its name, everything is standardized so you do not have to worry too much about the conditions of opening an account. Standard / Classic accounts will usually require a minimum deposit of a few hundred to 1,000 – 2,000 USD depending on the exchange. However, this deposit is only for the purpose of ensuring the utilities are provided and the benefits that traders will receive during the transaction such as attractive spreads, diverse leverage and ratio. low margin call. Standard / Classic accounts also support multi-deposit methods such as Net, Skrill, MasterCard, Internet Banking.
The Pro Account is a more premium version than the Standard / Classic account, so is also reserved for certain subjects with slightly more stringent requirements. Specifically, the most outstanding feature is that the minimum deposit will be much higher than that of Classic accounts, up to several tens of thousands of dollars. In return, traders will have extremely low spreads, options for overnight fees, no commission and leverage more diverse than the two types of accounts above. This account will be suitable for longtime traders, or traders with large capital, who have a solid knowledge of the forex industry to make the most of the benefits it brings.
ECN account is the type of account where your orders will be transferred directly to the bank without any intermediaries. Therefore, this account will have different characteristics than the rest of the list. Orders in ECN accounts will match orders according to the market and not be re-quoted, at the same time, the spread is also very competitive. However, in return, you will be charged a commission to ensure these conditions. If you want to open an ECN account, you will need a minimum deposit of several hundred USD depending on the broker. When trading, the maximum number of orders is usually unlimited, however the limit on the leverage you can choose and may require margin.
Note to everyone that the above are just the types of forex trading accounts that I see popular in the market only, not all types of dentistry. When deciding which broker to trade with, you should also carefully read the characteristics that the types of accounts they provide to avoid confusion and use the type of account that is not right for you. Some international brokers may offer several different types of accounts, such as combining the ECN and Pro account features into one new one. It is important that people always carefully check the broker’s reputation and consult the traders who have traded with different types of accounts to choose from.